Enhancing OSHStandards and Productivity through Supply Chain Management

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Enhancing OSH-Standards and Productivity through
Supply Chain Management
Gerd Albracht (ILO) Senior Specialist
Occupational Safety and Health andHead of
Development of Inspection Systems
International Conference on Partnerships in
Occupational Safety and Health Inspection
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Presentation Outline

• Current Challenges
• What is Supply Chain Management
• The Barbie Example
• ILO-VW-GTZ Project
• ABB Example
• IKEA Example
• Study
• Conclusions

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CURRENT CHALLENGES

• Labour Fragmentation, deregulation and
  privatization
• Annual 2.2 million fatal occupational accidents
  and diseases
• New technologies with emerging risks
• Individual flexible employment contracts
• Outsourcing of sub-contracted work-tasks

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Supply Chain Management

• delivering the right product to the right place
  at the right time and the right price

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The Barbie doll example
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ILO-GTZ-Volkswagen Project
Mexico / Brazil / South Africa

• Project with GTZ and Volkswagen-Suppliers to
• improve Safety and Health at the workplaces
• improve the Implementation of the VW Social
  Charter that is linked to the UN Global
  Compact
• gain external knowledge and identify information
  resources from suppliers
• improve overall processes at the workplace

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VW Suppliers
VW-Schedule First phase overall steering
committee (ILO, GTZ, VW) Second phase Process
Optimizing Consulting Optimizing Team Third
phase NPC develops strategy and draws
conclusions Fourth phase Implementation of a
Supply Chain Management Guideline GOAL
Implementation of an international
guideline on OSH
Process Optimizing Consulting (POC)
Process Optimizing Team (POT)
Development of an international OSH
Guideline for Suppliers
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Achievements

• Development and application of excellent Audit
  System
• Improvement of OSH performance
• Increase of Suppliers productivity
• Development of Information management System
• Establishment of national OSH Programmes and a
  safety and health culture at work
• Reduction of occupational accidents

BEFORE
AFTER
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ABB-Example
Questionnaire for suppliers
Evaluation of completed questionnaires
Development of Social Policy
GOAL to establish and maintain appropriate
procedures to evaluate and select major
suppliersd and subcontractors on their ability to
meet the requirements of ABBs social policy and
principles.
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ABB-Guideline

• ABBs social policy guidelines for suppliers
• No child labor
• No forced labor
• Provide a safe and healthy workplace
• Ensure effective employee consultation
• No employee discrimination
• No mental, physical or verbal abuse
• Comply with law and industry standards on working
  hours
• Offer adequate wages
• Measured against ABBs social policy principles

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IKEA

• September 2000, IKEA launched Code of Conduct for
  its 2,000 suppliers, focusing on working
  conditions and environmental impacts
• IKEA and the supplier work out an action plan.
• If the supplier is unable or unwilling to make
  changes, the relationship can come to an end.
• The IKEA Group helps suppliers improve operations
  through a network of Trading Service Offices. An
  internal support and monitoring group follows up
  developments on a global basis.

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Preventive Service System
competencecenter
network ofOSH experts
phone
managementcommunication, selection
of experts, qualitymanagement
interface
fax
recording dialogues andensuring availability
question
Internet
user
back office
front office
not visible for users
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• Four levels of consultancy

Renderring assistance via KomNet
Dissemination of informatione.g. books,
leaflets, Internet
Dissemination of information and provision of
advise of how to handle with the information
Providing exemplary solutions which maybe
adapted to the specific situation
Consultancy by case related to a specified
problem
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ILO Study

• Aims at providing guidance for supply chain
  management and occupational safety and health
• Covers several continents and economic branches
• aims at providing supply chain
  management guidance, nationally and
  internationally

Everyone has the right to work, to free choice
opf employment, to just and favourable conditions
of work (Art. 23 I UDHR)
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Think Global- Act Local
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Business has a direct stake in putting human
needs first. Working conditions that respect the
need for human dignity, equality and social
protection also bring productive workplaces and
competitive business Juan Somavia, Director
General, International Labour Organization
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Thank you for your attention!
Gerd Albracht (ILO) Senior Specialist
Occupational Safety and Health andCoordinator
Development of Inspection Systems Contact
albracht_at_ilo.org
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• For further Information please also visit our
  Website
• http//www.ilo.org/labourinspection
• http//www.ilo.org/safework